What the changes say
- UPS is executing a strategy to reduce Amazon.com volume by over 50% by June 2026, cutting related assets and workforce.
What changed since the prior 10-K
New
- NewBusiness and Operating Risks
additional information on the operational and financial impacts arising from this strategy, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations"
Significant customers can account for major revenue shares, and the loss of their business, pricing demands, or contract terminations could hurt our results.
- NewBusiness and Operating Risks
identify, mitigate and/or eliminate future breaches or cybersecurity incidents may require significant additional effort and expense and may not be successful
Heightened U.S. and international data protection laws like the GDPR and CPRA create compliance burdens, litigation, and penalties.
Reworded
- 97% rewrittenBusiness and Operating Risks
Changes in our relationships with any of our significant customers, including as a result of our strategy to reduce volume from our largest customer or the loss or reduction in business from one or more other customers, could have a material adverse effect on us
Updated to state that Amazon.com accounted for 10.6% of 2025 revenue and describe ongoing asset and workforce reductions to eliminate stranded costs.
Was: Changes in our relationships with any of our significant customers, including the loss or reduction in business from one or more of them, could have a material adverse effect on us
- 61% rewrittenFinancial Risks
Changes in markets and our business plans have resulted, and may in the future result, in substantial impairments of the carrying value of our assets, thereby reducing our net income
Added acquisition integration activities as a factor that could impact fair value estimates and lead to asset impairments.
- 51% rewrittenBusiness and Operating Risks
Failure to attract or retain qualified employees could materially adversely affect us
Refined wording regarding the global workforce and added references to increased claims costs and labor management.
- 47% rewrittenBusiness and Operating Risks
A significant cybersecurity incident, increased data protection regulations, or other information technology related risks, could materially adversely affect us
Streamlined terminology regarding information technology networks and operational technologies.
Was: A significant cybersecurity incident, or increased data protection regulations, could materially adversely affect us
- 44% rewrittenRegulatory and Legal Risks
Increasingly complex and stringent laws, regulations and policies could materially increase our operating costs
Characterized U.S. and international trade discussions as unpredictable regarding tariff policies and trade agreements.
- 42% rewrittenRegulatory and Legal Risks
Regulations related to climate change, including reporting obligations, could materially increase our operating costs
Minor phrasing adjustments regarding greenhouse gas emissions regulations and disclosure costs.
Was: Increasingly stringent regulations related to climate change, including reporting obligations, could materially increase our operating costs
- 40% rewrittenBusiness and Operating Risks
Changes or continued uncertainty in general economic conditions, in the U.S. and internationally, may adversely affect us
Added international trade policies and general economic uncertainty as factors affecting operations.
Was: Changes in general economic conditions, in the U.S. and internationally, may adversely affect us
- 37% rewrittenBusiness and Operating Risks
Strikes, work stoppages or slowdowns by our employees could materially adversely affect us
Simplified references to the Teamsters union agreement expiring on July 31, 2028, and unrepresented employee organizing.
- 35% rewrittenBusiness and Operating Risks
The effects of global climate change could materially adversely affect us
Was: Global climate change could materially adversely affect us
- 34% rewrittenBusiness and Operating Risks
Economic, political, or social developments and other risks associated with international operations could materially adversely affect us
- 34% rewrittenBusiness and Operating Risks
Inability to effectively integrate acquired businesses and realize the anticipated benefits of any acquisitions, joint ventures or strategic alliances could materially adversely affect us
Was: Our inability to effectively integrate any acquired businesses and realize the anticipated benefits of any acquisitions, joint ventures or strategic alliances could materially adversely affect us
- 30% rewrittenBusiness and Operating Risks
We maintain significant physical operations. Increases in operational security requirements impose substantial costs on us and we could be the target of an attack or have a security breach, which could materially adversely affect us
- 29% rewrittenFinancial Risks
Our business requires significant capital and other investments; if we do not accurately forecast our future investment needs, we could be materially adversely affected
- 26% rewrittenFinancial Risks
Changing fuel and energy prices, including gasoline, diesel and jet fuel, and interruptions in supplies of these commodities could materially adversely affect us
- 24% rewrittenFinancial Risks
Employee health and retiree health and pension benefit costs represent a significant expense to us; further cost increases could materially adversely affect us
- 21% rewrittenFinancial Risks
Insurance and claims expense could materially adversely affect us
All 24 risk factors
Headings as the filing states them, in filing order.
Business and Operating Risks
- 01Changes or continued uncertainty in general economic conditions, in the U.S. and internationally, may adversely affect us40% rewritten
- 02Our industry continues to rapidly evolve. We expect to continue to face significant competition, which could materially adversely affect us
- 03Changes in our relationships with any of our significant customers, including as a result of our strategy to reduce volume from our largest customer or the loss or reduction in business from one or more other customers, could have a material adverse effect on us97% rewritten
- 04additional information on the operational and financial impacts arising from this strategy, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations"New
- 05Failure to attract or retain qualified employees could materially adversely affect us51% rewritten
- 06Strikes, work stoppages or slowdowns by our employees could materially adversely affect us37% rewritten
- 07We maintain significant physical operations. Increases in operational security requirements impose substantial costs on us and we could be the target of an attack or have a security breach, which could materially adversely affect us30% rewritten
- 08A significant cybersecurity incident, increased data protection regulations, or other information technology related risks, could materially adversely affect us47% rewritten
- 09identify, mitigate and/or eliminate future breaches or cybersecurity incidents may require significant additional effort and expense and may not be successfulNew
- 10Failure to maintain our brand image and corporate reputation could materially adversely affect us
- 11The effects of global climate change could materially adversely affect us35% rewritten
- 12Severe weather or other natural or man-made disasters could materially adversely affect us
- 13Economic, political, or social developments and other risks associated with international operations could materially adversely affect us34% rewritten
- 14Inability to effectively integrate acquired businesses and realize the anticipated benefits of any acquisitions, joint ventures or strategic alliances could materially adversely affect us34% rewritten
Financial Risks
- 15Changing fuel and energy prices, including gasoline, diesel and jet fuel, and interruptions in supplies of these commodities could materially adversely affect us26% rewritten
- 16Changes in foreign currency exchange rates or interest rates may have a material adverse effect on us
- 17Our business requires significant capital and other investments; if we do not accurately forecast our future investment needs, we could be materially adversely affected29% rewritten
- 18Employee health and retiree health and pension benefit costs represent a significant expense to us; further cost increases could materially adversely affect us24% rewritten
- 19Insurance and claims expense could materially adversely affect us21% rewritten
- 20Changes in markets and our business plans have resulted, and may in the future result, in substantial impairments of the carrying value of our assets, thereby reducing our net income61% rewritten
- 21We may have significant additional tax liabilities that could materially adversely affect us
Regulatory and Legal Risks
- 22Increasingly complex and stringent laws, regulations and policies could materially increase our operating costs44% rewritten
- 23Regulations related to climate change, including reporting obligations, could materially increase our operating costs42% rewritten
- 24We may be subject to various other claims and lawsuits that could result in significant expenditures which may materially adversely affect us
Other United Parcel Service 10-Ks
- FY2024 10-K risk factors22 risks
Loss of Amazon volume by more than 50% by June 2026 poses a major customer concentration risk. Teamsters union labor agreements through July 2028 govern significant U.S. operations. Global footprint creates heavy exposure to currency fluctuations, climate regulations, and physical security demands.
Filed Feb 18, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.